A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $121 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2021, Champion Chemical Corporations balance sheet appeared as follows (in condensed form): CHAMPION CHEMICAL CORPORATION Balance Sheet At December 31, 2021 ($ in millions) Cash $ 24 Receivables 48 Inventory 294 Land 48 Buildings and equipment (net) 98 $ 512 Liabilities $ 297 Common stock (396 million shares at $1 par) 396 Additional paid-in capital 60 Retained earnings (deficit) (241 ) $ 512 Required: 1. Prepare the journal entries appropriate to record the quasi reorganization on January 1, 2022. 2. Prepare a balance sheet as it would appear immediately after the restatement.